₹1.56 Crore Digital Scam: Employees Tamper Internal System, Alter Bank Details and Divert Funds from Escrow Accounts

Ahmedabad: A significant financial fraud involving internal employees has been uncovered at a digital procurement services firm, where alleged misuse of system privileges led to the diversion of approximately ₹1.56 crore from escrow-linked transactions. The case has raised serious concerns over insider threats and cybersecurity gaps in enterprise financial systems.

How the Digital Scam Was Executed

The fraud reportedly took place at Ahmedabad-based E-Procurement Technologies Limited, which operates platforms for e-auctions and e-tendering. These systems typically store bidder security deposits in escrow accounts and release refunds after the completion of bidding processes.

According to the complaint filed by the company’s finance head, two employees allegedly exploited their administrative access rights to manipulate sensitive account information. The accused are said to have altered bidder records, reset login credentials, and tampered with Digital Signature Certificate (DSC) authentication files to bypass security checks.

By changing registered banking details within the system, the employees allegedly redirected refund payments intended for bidders into accounts under their control.

Funds Transferred to Personal Accounts

Investigators claim that around ₹16 lakh was credited to an account held by one of the accused at State Bank of India, while nearly ₹1.40 crore was transferred to a Bank of Baroda account belonging to a relative of another accused.

The total misappropriated amount is estimated at ₹1.56 crore, allegedly siphoned off in multiple transactions over a period spanning several years. The prolonged timeline reportedly helped the fraudulent activity remain undetected during routine financial reviews.

Internal Audit Uncovers Irregular Activity

The scam came to light after an internal audit and forensic examination flagged unusual system behavior. Investigators identified repeated unauthorized logins, frequent changes in bidder credentials, and inconsistencies in transaction records.

A deeper review of server logs and authentication trails ultimately pointed toward internal misuse of privileged access. Authorities are now examining whether additional individuals may have assisted or benefited from the fraud.

Growing Concern Over Insider Cyber Threats

The incident underscores the rising risk of insider-driven cyber fraud in organizations that manage large-scale digital financial transactions. Experts highlight that while external cyberattacks often receive more attention, internal access abuse remains a critical vulnerability.

Cybersecurity professionals emphasize the need for stronger safeguards such as multi-factor authentication, stricter control over digital signatures, real-time transaction monitoring, and continuous audit mechanisms to prevent similar incidents.

Investigation Continues

Authorities are continuing to trace financial flows and digital evidence to determine the full extent of the fraud. Further scrutiny is underway to identify any additional beneficiaries or systemic weaknesses that may have enabled the scam.

The case serves as a warning for digital procurement platforms and financial systems relying heavily on internal access controls, highlighting the urgent need for enhanced cybersecurity frameworks.